No one plans on experiencing a disabling illness or injury. But illnesses and accidents do happen, and our disability insurance plans provide more than just income replacement in case of disability. Our plans also provide the kind of support employees need to help them get back to health, back to work and back to life.

Portability

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Portability

Portability allows an employee to continue his or her coverage upon termination of his or her employment with the group. Portability is available for Optional Life Insurance and Optional Dependent Life Insurance. Employees and dependents may continue coverage under the portability option without providing evidence of insurability and regardless of their health status.

When is an employee eligible to continue their group term life insurance coverage under the portability option?

In order to elect portability upon termination of employment, the employee and dependents must have been covered by the group’s coverage for at least 12 months. The employee and dependents must be under the age of 65 when employment terminates. The employee must elect portability in order for the dependent(s) to also elect portability.

The amount that may be continued under the portability option is the employee’s and dependent’s coverage amount, or they may elect to port a lower amount. Once elected, the benefit amount may not be changed.

Portability coverage is group term life insurance. Coverage is provided through a group insurance trust. The rates for portability coverage are pooled for the entire trust group and are in 5 year age bands. Each employee will be billed individually for their ported coverage. Billing options for ported coverage include quarterly, semi-annual, and annual.

What happens if the individual dies within the time period allowed for portability?

Because portability is a privilege and not a legal right, if an individual dies during the time period allowed to elect portability, no payment will be made. However, payment might be made under the Conversion Right if the requirements of Conversion are met.

Who is responsible for notifying the eligible person of their portability privilege?

It is the employer’s responsibility to notify eligible persons of their portability privilege. There is typically no extension of the life insurance portability period due to delayed notice to employees of their portability right.

Portability coverage ends when the employee or dependent reaches age 70. Of course standard provisions regarding nonpayment of premium also apply. If coverage terminates because premium was not paid, ported coverage cannot be reinstated.